CHP 13: MIX AND YIELD VARIANCE ANALYSIS CN

What is the material mix variance?

Adverse
Favourable

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CHP 13: MIX AND YIELD VARIANCE ANALYSIS CN

Answer Lecture Example 1:

SQ= Actual units x std qty = 100 x 10 = 1000kgs

To check: $
Total material usage variance: Onions = (600-500) x $2 = 200A
Tomatoes= (900-500) x$4 = 1600 A mix $300A
Total 1800 A
Yield $1500A

Alternative way to calculate YIELD VARIANCE

material input

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CHP 13: MIX AND YIELD VARIANCE ANALYSIS CN

favourable mix variance

ANSWER: B

11

=5/11x5280=2400
6/11 x 5280 =2880

SQ = 4800 x 1.1= 5280

(w1) $20.909 = $230/11

Alternative yield variance: (i) Output method

(i) Input method
4950 litres should produce (divide 1.1) = 4500 litres
4800 litres should use (x 1.1) = 5280 litres Actual qty produced = 4800 litres
Actual usage (2200+2750) = 4950 litres 3
300 F
330 F x std material cost/litre $23
x weighted average cost $20.909 (w1) $6900F
$6900F